- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Is it better to rent or buy a house
Posted on 7/9/19 at 10:17 am to PearlJam
Posted on 7/9/19 at 10:17 am to PearlJam
quote:
The purchaser and renter both have an essential cost. But, stripping out that essential cost, the owner is left with a valuable asset (one that will appreciate over time) and the renter does not
Yes they are.
quote:
That is an investment
No its not, you said it yourself, it's a cost.
1
Posted on 7/9/19 at 10:17 am to Mingo Was His NameO
quote:These costs are, by in large, factored into your rent. It is a myth to assume you aren't paying these costs simply because it isn't a line item in your rent.
You take the savings from post purchase costs
Posted on 7/9/19 at 10:19 am to 777Tiger
quote:
cookie cutter suburbia, Keller, and I do mean cookie cutter, there is nothing spectacular about the development I'm in
What's funny, I didn't know you lived in Tx, just taking a stab..
My sister and her husband lived in Denton County and paid about the same..
But hey, the public schools are awesome.. Have to take the good with the bad...
Our property tax goes through Catholic schools...
This post was edited on 7/9/19 at 10:19 am
Posted on 7/9/19 at 10:19 am to lsu13lsu
quote:
Sometimes it could be renting and sometimes it could be buying.
Renting makes sense if you're in a flat market and can invest money you would use for a down payment.
For most people though, buying pays off.
Posted on 7/9/19 at 10:20 am to Mingo Was His NameO
quote:And an investment. Let's say whatever the rent would be for your house is a cost. The small amount you pay in addition to that rent payment then is an investment with a real return in an appreciating asset.
it's a cost
Posted on 7/9/19 at 10:20 am to Kujo
quote:I'm finding these numbers incredibly hard to believe, especially the 95k to 950k one.
at 19 the house was 95k, today that house lists for 950k
at 21 another house was 45k, today that house is 350k
at 24 another house was 185k, today that house is 675k
Where was this, California? And what was the time frame?
Posted on 7/9/19 at 10:20 am to PearlJam
quote:
These costs are, by in large, factored into your rent
Not anywhere a near one to one basis. And a renter is a disproportionate advantage on price fluctuations in the market.
quote:
It is a myth to assume you aren't paying these costs simply because it isn't a line item in your rent.
Again, a renter is not paying on a one to one basis. Rent is far more dependent on current market price rather than owners purchase price.
This post was edited on 7/9/19 at 10:21 am
Posted on 7/9/19 at 10:26 am to Mingo Was His NameO
As an example: I could rent my house or for 1500 per month (probably a little more). My mortgage, taxes and insurance are slightly less than that (let's call it even). So every dollar I spend on maintenance, is an investment in owning an asset that is worth approx $300,000.
Now, as you pointed out, I have additional risk in market fluctuation that a renter doesn't have. That's what comes with investments, risk.
Now, as you pointed out, I have additional risk in market fluctuation that a renter doesn't have. That's what comes with investments, risk.
Posted on 7/9/19 at 10:28 am to Mingo Was His NameO
quote:And because real estate generally appreciates, rents generally go up over time, so the property owner is making money on rent and appreciation.
Rent is far more dependent on current market price rather than owners purchase price.
This post was edited on 7/9/19 at 10:30 am
Posted on 7/9/19 at 10:29 am to Eighteen
quote:
While true, if you can get close to break even of even only 5 or 10K "loss" after 5 years that's still better than paying $1200 a month in rent x 12 x 5 years for a place to live. But its true that you need to calculate taxes paid yearly, insurance paid yearly, interest payments made lifetime while you owned, closing costs for selling in addition to all of the improvements and maintenance to get your actual "profit" on the house.
But what if I rent and take money that I would have put into a down payment and instead invest in equities/bonds? I will likely get a return on those dollars that I would not get had I used it as equity in a home.
Let's say that's $50k. Someone who put that into the S&P 500 over the past few years would have earned a lot more than the average appreciation in home values.
You could still easily be better off renting at the 5 year mark.
This post was edited on 7/9/19 at 10:30 am
Posted on 7/9/19 at 10:30 am to lsu13lsu
quote:
. The starting price
single biggest key right there, you have to have a max that you are willing to pay, and a budget/plan already lined out, get in, get out, all within budget, including time frame
This post was edited on 7/9/19 at 10:32 am
Posted on 7/9/19 at 10:31 am to Hangover Haven
quote:
, the public schools are awesome..
would sting less if I had kids in school here
the school districts take the biggest bite out of property taxes here
Posted on 7/9/19 at 10:32 am to PearlJam
quote:
So every dollar I spend on maintenance, is an investment in owning an asset that is worth approx $300,000.
This makes absolutely zero sense
Posted on 7/9/19 at 10:34 am to PearlJam
quote:
So every dollar I spend on maintenance, is an investment in owning an asset that is worth approx $300,000.
Not if it doesn't improve the value of the home. It's just a sunk cost. If your AC costs $5k to fix, you lost $5k. Your equity position is unchanged.
This post was edited on 7/9/19 at 10:36 am
Posted on 7/9/19 at 10:36 am to Mingo Was His NameO
quote:The cost to own my house (mortgage, taxes, insurance) is roughly the same as it would take to rent it in the market today. This, my investment to own the property, stepping out the essential cost element, is essential the dollars I spend on the property in addition to the mortgage, taxes and insurance.
This makes absolutely zero sense
Not every scenario works this way, but many do.
Posted on 7/9/19 at 10:39 am to pizzatiger
quote:
Not if it doesn't improve the value of the home
another fallacy/misconception that most homeowners have, maintenance of the property is not an improvement or upgrade, if the house needs a new roof, it needs a new roof, a lot of homeowners think they should get back the cost of that roof dollar for dollar, doesn't work that way, adding a pool is considered in the same light by the homeowner, "I just put in a $40k pool!" so the frick what? you wanted the pool, not me, if I buy this dump the first thing I'm going to do is fill it in, that's going to cost me money
Posted on 7/9/19 at 10:42 am to PearlJam
quote:
The cost to own my house (mortgage, taxes, insurance) is roughly the same as it would take to rent it in the market today. This, my investment to own the property, stepping out the essential cost element, is essential the dollars I spend on the property in addition to the mortgage, taxes and insurance.
You're arguing against yourself
Posted on 7/9/19 at 10:51 am to pizzatiger
quote:
would not get had I used it as equity in a home.
Let's say that's $50k. Someone who put that into the S&P 500 over the past few years would have earned a lot more than the average appreciation in home values.
You could still easily be better off renting at the 5 year mark.
Valid. Which is why its all so variable
The only time you win the home owner lottery is owning a property in an area that booms (New Orleans, Austin for currently examples)
Now from a lifestyle standpoint, owning can have its advantages (stability, no moving, able to install things that you like, paint what you like, etc.)
This post was edited on 7/9/19 at 10:56 am
Posted on 7/9/19 at 10:53 am to Bossbailey34
I wasted 800 bucks a month for two years renting. That's a shite ton of money that could have been invested. Renting is retarded as frick and for naive broke boi's.
Posted on 7/9/19 at 10:54 am to Gcockboi
quote:
I wasted 800 bucks a month for two years renting. That's a shite ton of money that could have been invested. Renting is retarded as frick and for naive broke boi's.
baw, did you read any of this?
Page 7 of 8
Popular
Back to top
Follow TigerDroppings for LSU Football News